WHAT THE FUNDRAISING
94: The People Behind the Products: How Giving Circles Support Belonging, Community and Your Fundraising with Emily Rasmussen
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“Microfinance really helped pioneer this idea of social collateral and people working together and advocating for each other in order to unlock access to funds.”
– Emily Rasmussen
Episode #94
Overview
In this episode of What the Fundraising Podcast…
Giving Circles have been around as a concept since the 1980s, but in combination with new technologies, those circles are wider and more generous than ever before. As we learn from Emily Rasmussen, my guest on this episode of What the Fundraising, having a platform around which to congregate strengthens the communities that are fueling movements. She founded Grapevine in 2018 specifically to facilitate multiple small donations – maximizing their impact and helping to connect the dots between people and organizations. We know that more collaboration equals more momentum. Pooling resources only expands the pie (which is another reason why a scarcity mindset does no one any favors).
In this conversation, you’ll learn about the different models for Giving Circles, what kinds of networks have been most successful thus far, and how technology can aggregate and amplify the interests of small donors and the community. Emily is sharing key ingredients to keep in mind when setting up a Giving Circle modality and highlights the importance of putting an intentional framework in place. “Nonprofits are recognizing this model and seeing the power,” says Emily. “This is a movement. It’s only accelerating!” We’re leaving you with lots of points of entry for moving your nonprofit into the fast lane with this form of turbocharged fundraising – and the community purpose it stewards and grows.
EPISODE HIGHLIGHTS
- (01:51) – About Emily’s progression through an expanding universe of microlending and new technologies to support international initiatives – including her current work with Grapevine, the crowdsourced giving platform.
- (03:04) Understanding the compelling ability of microfinance to target small-dollar donations in exponentially empowering ways.
- (04:25) How Giving Circles leverage small-dollar donations in huge ways by aligning goals, decision-making, and strategic priorities.
- (06:45) Connecting the dots between funders and nonprofits to amplify individual contributions, scaling not only impact but also communications and connection.
- (08:19) Finding ways to respond to the question: “What’s the return on my investment?”
- (12:21) Giving Circles, how they work and what it takes to set them up:
- Emerged in the 1980s, mostly driven by women with community-centric goals.
- There are a variety of models.
- Some are location-based, others cause-based.
- Organizations and businesses are increasingly partnering.
- Online availability has expanded its reach and broadened the base of participants.
- Giving Circles have moved over $1.3 billion and engaged 150,000 donors.
- (15:03) Key ingredients to set Giving Circles up to flourish:
- Be intentional about informing and engaging your donor base.
- Emphasize the unified voice and direct community connection.
- Consult Grapevine or Philanthropy Together to help establish your framework and strategy.
- Consider your organization’s natural constituencies.
- (18:24) Cracking the scarcity mindset, opening up the ecosystem, and exercising the philanthropic muscle.
- (19:26) Even though Giving Circles have been around for several decades, Grapevine provides a platform that fills what was a gap between a style of giving and the building of a movement. Tools they provide include:
- Aggregating donations.
- Generating tax receipts.
- Tracking customer (i.e. donor) experience.
- Creating and expanding networks.
- All-in-one management of the end-to-end small-donor process.
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Emily and Grapevine
ADDITIONAL RESOURCES
- Learn more about the microfinance organization www.kiva.org
- Our Invitation to Disrupt Philanthropy | Sara Lomelin | TED
- Check out my Power Partners Formula and register for a masterclass here. You might also be interested in taking my Fundraising Superpower Quiz.
Brought To
you By:
TIPS AND TOOLS TO IMPLEMENT TODAY
- Donors appreciate transparency – especially in regards to impact. Consider noting right on your website specifically what a contribution of $X will do to help the mission.
- Is a Giving Circle right for your nonprofit? Results depend on building the infrastructure and communication to create and activate a web of support.
- Collaboration is Key: More and more nonprofits have started partnering and Giving Circles are one way to bring organizations and donors together.
- Remember that the pie only gets bigger. If “your” donor gives elsewhere, it does not take them away from you (and may actually predispose them to further giving).
- The more your nonprofit serves as a fulcrum, the more it expands its reach and reputation as a connector or influencer.
- Flexing the philanthropic muscle takes time; reinforcing good feelings about any size of donation is not only more equitable but also builds memory and commitment with the donor.
FAVORITE QUOTES
- “Microfinance really helped pioneer this idea of social collateral and people working together and advocating for each other in order to unlock access to funds.” - Emily Rasmussen
- “A lot of nonprofits struggle with the desire to treat their donors more equitably … and not just prioritize larger amounts.” - Mallory Erickson
- “Nonprofits are recognizing this (Giving Circles) model and seeing the power … This is a movement. It's only accelerating!” - Emily Rasmussen
- “Especially coming out of Covid, nonprofits are collaborating more, trying to find more creative ways to be part of a broader ecosystem of organizations supporting the cause … through giving circles.” - Emily Rasmussen
- “I think inside our sector there's a lot of trying to hold our donor list close to our chest and being fearful of opening our donor community to other similar types of nonprofits and I just want to reinforce … that the more a donor gives to other organizations, the better it is for every organization.” - Mallory Erickson
- “Most donors are giving to seven to eight organizations on average. And the more supported and stewarded and cultivated those donors are, the more connection they have to community in their giving, the better it is.” - Mallory Erickson
- “Having a positive experience and having (the donor) in some way be a part of it, that’s extremely valuable ... Feeling really good about their engagement in philanthropy and their connection to you ultimately is what leads to those future gifts.” - Emily Rasmussen
RELATED CONTENT
Get to know Emily:
Emily Rasmussen is the Founder and CEO of Grapevine, a collective giving platform. She was the founding Executive Director of NYU’s Center for Ballet and the Arts, launched the Lincoln Center at the Movies global media initiative, and developed innovative financing models for impact at Enterprise Solutions to Poverty. Emily has consulted on event cinema for Disney Theatrical Group, taught Creative and Cultural Entrepreneurship at SUNY Purchase, and spent two years developing microfinance and fair trade programs in India. She is a board member of the Harvard Business School Women’s Association, a member of the LISC Emerging Leaders Council, the AfterArts group, NOVA Impact, and a founding member of UNTITLED, an arts & business innovation initiative. Previously, she was a professional ballet dancer and performed with the Pacific Northwest Ballet, among others. Emily holds a B.A. from Occidental College in Diplomacy, World Affairs, and Economics and an MBA from Harvard Business School.
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I teach nonprofit fundraisers to bring in more gifts from the RIGHT donors… so they can stop hounding people for money. Fundraising doesn’t have to be uncomfortable.
- CEO & Creator of the Power Partners Formula™
- Disruptor in the funding sector, changing lives everyday
- Relentlessly committed to the movement of money into the nonprofit sector
- Focused on win-win partnerships that allow fundraisers to be authentic and empowered in their work
- Over 15 years working in nonprofits (managing director and ED of multiple fast-growth organizations)
MALLORY ERICKSON
episode transcript
